<PAGE>
THE TOTAL NUMBER OF PAGES CONTAINED IN THIS DOCUMENT IS 12
FORM 6-K
----------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of December 2000
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
(Translation of registrant's name into English)
3-1, OTEMACHI 2-CHOME
CHIYODA-KU, TOKYO 100-8116, JAPAN
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
---
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ____ No X
---
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-____________.
<PAGE>
2
INTERIM RESULTS:
Enclosed is information as to the registrant's financial condition and
results of operations at and for the six-month period ended September 30, 2000.
The financial information included therein was prepared on the basis of
accounting principles generally accepted in the United States.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
NIPPON TELEGRAPH AND TELEPHONE
CORPORATION
By /s/ Hiroo Inoue
--------------------------------
Name: Hiroo Inoue
Title: General Manager
Department IV
Date: December 22, 2000
<PAGE>
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
--------------------------------------------
AND ITS SUBSIDIARIES
------------------------
CONSOLIDATED BALANCE SHEET (UNAUDITED)
------------------------------------------
<TABLE>
<CAPTION>
Millions of
U.S. dollars
Millions of yen (Note 2)
--------------------------------------- -------------------
March 31, September 30, September 30,
2000 2000 2000
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents (Yen)1,155,274 (Yen)517,391 $4,791
Notes and accounts receivable, trade 1,678,095 2,045,873 18,943
Allowance for doubtful accounts (35,682) (39,149) (362)
Inventories 189,850 241,522 2,236
Prepaid expenses and other current assets 709,230 534,327 4,947
--------------------------------------------------------------------------------------------------------------------
Total current assets 3,696,767 3,299,964 30,555
--------------------------------------------------------------------------------------------------------------------
Property, plant and equipment:
Telecommunications equipment 12,334,617 12,678,631 117,395
Telecommunications service lines 11,958,392 11,982,324 110,947
Buildings and structures 5,151,633 5,225,788 48,387
Machinery, vessels and tools 1,836,879 1,854,231 17,169
Land 745,261 770,348 7,133
Construction in progress 579,822 634,805 5,878
--------------------------------------------------------------------------------------------------------------------
32,606,604 33,146,127 306,909
Accumulated depreciation (20,743,008) (21,336,464) (197,560)
--------------------------------------------------------------------------------------------------------------------
11,863,596 11,809,663 109,349
--------------------------------------------------------------------------------------------------------------------
Investments and other assets:
Investments in affiliated companies 338,379 936,780 8,674
Marketable equity securities and other investments 369,654 454,063 4,204
Intangible and other assets 1,881,597 2,547,001 23,583
Deferred income taxes 951,296 1,049,927 9,722
--------------------------------------------------------------------------------------------------------------------
3,540,926 4,987,771 46,183
--------------------------------------------------------------------------------------------------------------------
(Yen)19,101,289 (Yen)20,097,398 $186,087
====================================================================================================================
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
--------------------------------------------
AND ITS SUBSIDIARIES
----------------------
CONSOLIDATED BALANCE SHEET (UNAUDITED)
----------------------------------------
<TABLE>
<CAPTION>
Millions of
U.S. dollars
Millions of yen (Note 2)
--------------------------------------- ------------------
March 31, September 30, September 30,
2000 2000 2000
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings (Yen)410,305 (Yen)1,372,497 $12,708
Current portion of long-term debt 868,648 854,754 7,914
Accounts payable, trade 1,440,629 1,227,181 11,363
Accrued payroll 486,415 419,252 3,882
Accrued interest 40,390 56,355 522
Accrued taxes on income 346,895 374,564 3,468
Accrued consumption tax 92,014 78,071 723
Advances received 83,604 64,766 600
Other 88,877 166,044 1,537
--------------------------------------------------------------------------------------------------------------------------
Total current liabilities 3,857,777 4,613,484 42,717
--------------------------------------------------------------------------------------------------------------------------
Long-term liabilities:
Long-term debt 4,239,088 4,009,117 37,121
Obligations under capital leases 359,786 350,221 3,243
Liability for employees severance payments 3,088,996 3,191,586 29,552
Other 630,707 648,810 6,008
--------------------------------------------------------------------------------------------------------------------------
8,318,577 8,199,734 75,924
--------------------------------------------------------------------------------------------------------------------------
Minority interest in consolidated subsidiaries 910,311 1,003,730 9,294
--------------------------------------------------------------------------------------------------------------------------
Shareholders' equity :
Common stock, (Yen)50,000 par value -
Authorized-62,400,000 shares
Issued and outstanding:
-15,834,590 shares 795,600 795,600 7,367
Additional paid-in capital 2,530,476 2,530,476 23,430
Retained earnings 2,648,286 2,906,059 26,908
Accumulated other comprehensive income 40,262 48,315 447
--------------------------------------------------------------------------------------------------------------------------
6,014,624 6,280,450 58,152
--------------------------------------------------------------------------------------------------------------------------
Commitments and contingent liabilities
--------------------------------------------------------------------------------------------------------------------------
(Yen)19,101,289 (Yen)20,097,398 $186,087
==========================================================================================================================
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
------------------------------------------
AND ITS SUBSIDIARIES
--------------------
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
-----------------------------------------
SIX-MONTH PERIOD ENDED SEPTEMBER 30
-----------------------------------
<TABLE>
<CAPTION>
Millions of
U.S. dollars
Millions of yen (Note 2)
------------------------------------ ---------------
1999 2000 2000
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operating revenues:
Telephone (Yen)3,222,582 (Yen)3,133,941 $29,018
Telegraph 38,812 37,854 350
Leased circuit 261,870 248,605 2,302
Data communication facility 201,721 189,739 1,757
ISDN service 373,433 511,227 4,734
Sale of telecommunication equipment 502,656 701,665 6,497
Miscellaneous 420,832 650,620 6,024
------------------------------------------------------------------------------------------------------------------
5,021,906 5,473,651 50,682
------------------------------------------------------------------------------------------------------------------
Operating expenses:
Personnel 1,169,891 1,117,344 10,346
Depreciation, amortization and maintenance costs 1,611,871 1,642,504 15,208
Other 1,622,381 2,044,039 18,926
------------------------------------------------------------------------------------------------------------------
4,404,143 4,803,887 44,480
------------------------------------------------------------------------------------------------------------------
Operating income 617,763 669,764 6,202
------------------------------------------------------------------------------------------------------------------
Other expenses (income):
Interest and amortization of bond discounts and
issue costs 94,981 78,016 722
Interest income (16,631) (17,226) (159)
Gain on sales of investments in affiliated company (Note 4) - (76,100) (704)
Other, net 7,380 (17,814) (165)
------------------------------------------------------------------------------------------------------------------
85,730 (33,124) (306)
------------------------------------------------------------------------------------------------------------------
Income before income taxes 532,033 702,888 6,508
------------------------------------------------------------------------------------------------------------------
Income taxes:
Current 229,801 391,357 3,623
Deferred (60) (90,178) (835)
------------------------------------------------------------------------------------------------------------------
229,741 301,179 2,788
------------------------------------------------------------------------------------------------------------------
Income before minority interest and equity in earnings
of affiliated companies 302,292 401,709 3,720
Minority interest in consolidated subsidiaries (81,645) (96,357) (892)
Equity in earnings of affiliated companies 12,157 (1,897) (18)
------------------------------------------------------------------------------------------------------------------
Net income (Yen) 232,804 (Yen) 303,455 $2,810
==================================================================================================================
<CAPTION>
U.S. dollars
Yen (Note 2)
------------------------------------ ----------------
1999 2000 2000
----------------------------------------------------------------------------------------------- ----------------
<S> <C> <C> <C>
Per share of common stock:
Net income (Yen)14,676 (Yen)19,164 $177
------------------------------------------------------------------------------------------------------------------
Cash dividends (Yen) 7,500 (Yen) 2,500 $ 23
------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
------------------------------------------
AND ITS SUBSIDIARIES
--------------------
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED)
----------------------------------------------------------
SIX-MONTH PERIOD ENDED SEPTEMBER 30
-----------------------------------
<TABLE>
<CAPTION>
Millions of yen Millions of
U.S. dollars
(Note2)
----------------------------------- ----------------
1999 2000 2000
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Common stock:
At beginning of year (Yen) 795,600 (Yen) 795,600 $7,367
Capitalization of additional paid-in capital - - -
--------------------------------------------------------------------------------------------------------------
At end of period 795,600 795,600 7,367
--------------------------------------------------------------------------------------------------------------
Additional paid-in capital:
At beginning of year 2,530,476 2,530,476 23,430
Transfer to common stock - - -
--------------------------------------------------------------------------------------------------------------
At end of period 2,530,476 2,530,476 23,430
--------------------------------------------------------------------------------------------------------------
Retained earnings:
At beginning of year 2,628,272 2,648,286 24,521
Appropriations -
Cash dividends ((Yen)7,500) (119,339) - -
Cash dividends ((Yen)2,500 - $23 per share) - (39,586) (367)
Net income 232,804 303,455 2,810
Purchase and retirement of common stock (73,347) - -
Other change - (6,096) (56)
--------------------------------------------------------------------------------------------------------------
At end of period 2,668,390 2,906,059 26,908
--------------------------------------------------------------------------------------------------------------
Accumulated comprehensive income (loss):
At beginning of year (43,578) 40,262 373
Other comprehensive income 40,244 8,053 74
--------------------------------------------------------------------------------------------------------------
At end of period (3,334) 48,315 447
--------------------------------------------------------------------------------------------------------------
Shareholders' equity at end of period (Yen)5,991,132 (Yen)6,280,450 $58,152
==============================================================================================================
Summary of total comprehensive income:
Net income (Yen) 232,804 (Yen) 303,455 $ 2,810
Other comprehensive income 40,244 8,053 74
--------------------------------------------------------------------------------------------------------------
Comprehensive income (Yen) 273,048 (Yen) 311,508 $ 2,884
==============================================================================================================
</TABLE>
The accompanying notes are an integral part of these statements.
<PAGE>
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
------------------------------------------
AND ITS SUBSIDIARIES
--------------------
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
------------------------------------------------
SIX-MONTH PERIOD ENDED SEPTEMBER 30
-----------------------------------
<TABLE>
<CAPTION>
Millions of
U.S. dollars
Millions of yen (Note 2)
------------------------------------- ----------------
1999 2000 2000
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net income (Yen)232,804 (Yen)303,455 $ 2,810
Adjustments to reconcile net income to net cash provided
by operating activities -
Depreciation and amortization 1,108,343 1,190,417 11,022
Deferred taxes (60) (90,178) (835)
Minority interests 81,645 96,357 892
Loss on sale or disposal of property, plant and equipment 81,005 75,443 699
Gain on sales of investments in affiliated company (Note 4) - (76,100) (704)
Increase in notes and accounts receivable, trade (80,565) (360,371) (3,337)
Increase in inventories (44,908) (51,652) (478)
Decrease in other current assets 145,356 196,342 1,818
Decrease in accounts payable, trade and accrued payroll (177,740) (133,218) (1,234)
Increase (decrease) in accrued consumption tax 41,331 (13,943) (129)
Increase in accrued interest 5,817 16,135 149
Increase (decrease) in advances received 17,788 (18,838) (174)
Increase (decrease) in accrued taxes on income (270,610) 27,671 256
Increase in liabilities for employees' severance
payments, net of deferred pension costs 111,913 107,244 993
Increase in other long-term liabilities 62,483 13,286 123
Other (14,838) 13,225 122
---------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 1,299,764 1,295,275 11,993
---------------------------------------------------------------------------------------------------------------------
Cash flows from investing activities:
Payments for property, plant and equipment (1,242,374) (1,361,189) (12,603)
Proceeds from sale of property, plant and equipment 4,741 17,794 165
Proceeds from sale of marketable equity securities and
other investments (Note 4) 492 58,564 542
Payment for Verio Inc., net of cash acquired (Note 3) - (491,573) (4,552)
Payment for additional investments in affiliates and
intangible and other assets (Note 5) (319,800) (824,414) (7,633)
---------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities (1,556,941) (2,600,818) (24,081)
---------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
------------------------------------------
AND ITS SUBSIDIARIES
--------------------
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
------------------------------------------------
SIX-MONTH PERIOD ENDED SEPTEMBER 30
-----------------------------------
<TABLE>
<CAPTION>
Millions of
U.S. dollars
Millions of yen (Note 2)
------------------------------------ ------------------
1999 2000 2000
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash flows from financing activities:
Proceeds from issuance of long-term debt (Yen) 439,310 (Yen) 91,123 $ 844
Payments for settlement of long-term debt (274,688) (327,921) (3,036)
Purchases of common stock (73,347) - -
Dividends paid (119,339) (39,586) (367)
Net increase in short-term borrowings and other 505 944,044 8,741
--------------------------------------------------------------------------------------------------------------------
Net cash used in financing activities (27,559) 667,660 6,182
--------------------------------------------------------------------------------------------------------------------
Decrease in cash and cash equivalents (284,736) (637,883) (5,906)
Cash and cash equivalents at beginning of period 1,656,672 1,155,274 10,697
--------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period (Yen)1,371,936 (Yen)517,391 $ 4,791
====================================================================================================================
Cash paid during the period for:
Interest (Yen) 61,484 (Yen) 80,270 $ 743
====================================================================================================================
Income taxes (Yen) 488,740 (Yen)124,259 $ 1,151
====================================================================================================================
Capital lease obligations incurred during the period (Yen) 16,673 (Yen) 3,697 $ 34
====================================================================================================================
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
------------------------------------------
AND ITS SUBSIDIARIES
--------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
------------------------------------------------------
1. These consolidated financial statements have been prepared in accordance
with generally accepted accounting principles in the United States for
interim financial information and in accordance with the instructions to
Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles in the United States for annual financial statements. In the
opinion of management, all adjustments (consisting only of normal recurring
adjustments) considered necessary for a fair presentation have been
included. Operating results for the six-month period ended September 30,
2000 are not necessarily indicative of the results that may be expected for
the year ending March 31, 2001. For further information, refer to the
consolidated financial statements and footnotes thereto included in the
NTT's consolidated financial statements which is included in its Form 20-F
for the fiscal year ended March 31, 2000.
In December 1999, the Securities and Exchange Commission issued Staff
Accounting Bulletin No. 101 ("SAB 101"), "Revenue Recognition in Financial
Statements". The SEC delayed the implementation day by which a registrant
must comply with the accounting and disclosure standard described in SAB
101 until no later than the fourth quarter of the fiscal year beginning
after December 15, 1999. Irrespective of the delayed implementation date,
when adopted, SAB 101 will be applied with effect from April 1, 2000. NTT
continues to evaluate the effect that such adoption may have on its
consolidated results of operations and financial position.
2. U.S. dollar amounts are included solely for convenience. These translations
should not be construed as representations that the yen amounts actually
represent, or have been or could be converted into, U.S. dollars. The rate
of (Yen)108= US$1, the approximate current rate at September 30, 2000, has
been used for the purpose of presentation of the U.S. dollar amounts in the
accompanying consolidated financial statements.
3. On August 30, 2000, NTT Communications Corporation ("NTT Communications"),
a subsidiary of NTT, completed its acquisition of Verio Inc., a U.S.
Internet solution provider ("Verio"). The acquisition, recorded under the
purchase method of accounting, included the purchase of outstanding shares
of common stock of Verio at a price of $60 per share, plus acquisition
costs, resulted in a total purchase price of (Yen)529,634 million (US$4,904
million). A portion of the purchase price has been allocated to assets and
liabilities assumed based on estimated fair value at the date of
acquisition while the balance of (Yen)560,740 million (US$5,192 million)
was recorded as goodwill and is being amortized over ten years. The pro
forma impact of Verio on historical NTT results is immaterial.
4. In May 2000 NTT agreed to the sale of all shares it owned of Photonic
Integration Research, Inc. (PIRI), an affiliated company of NTT, to SDL
Inc. in exchange for SDL stock. In connection with this transaction, NTT
recognized a gain on sale of investments in affiliated company of (Yen)76
billion. The gain was based on a valuation for the 4,830 thousand shares of
SDL stock received by NTT minus the book value of PIRI's stock and
relating expenses. For the period from the date when NTT received the
shares of SDL stock to September 30, 2000, NTT sold 1,152 thousand shares
of SDL stock in the market for cash proceeds of (Yen)39.8 billion.
<PAGE>
-2-
These cash proceeds were included in the proceeds from sale of marketable
equity securities and other investments in NTT cash flows from investing
activities.
5. In July 2000, NTT DoCoMo Inc. (NTT DoCoMo), a subsidiary of NTT, invested
approximately (Yen)184,592 million (US$1,709 million), and acquired a 20%
interest in Hutchison 3G and KPN Mobile N.V. acquired a 15% stake in
Hutchison 3G. In August 2000, NTT DoCoMo also acquired a 15% of the Class A
shares of KPN Mobile N.V. for approximately (Yen)407,343 million (US$3,772
million).
6. Certain items for the six-month period ended September 30, 1999 and at
March 31, 2000 have been reclassified to conform to the 2000 presentation.
7. At September 30, 2000 there were no material litigation or claims
outstanding, pending or threatened against the Company.
<PAGE>
-3-
Subsequent events
-----------------
On November 9, 2000, the Company issued 300,000 shares of common stock in a
public offering to third parties at a price of (Yen)949 thousand (US$8,787) per
share. The net proceeds from the stock offering were approximately (Yen)279,300
million (US$2,586 million) and were used to repay short-term borrowings incurred
in the Verio acquisition.
On November 30, 2000, NTT DoCoMo signed a memorandum of understanding to invest
US$9.8 billion to purchase the equivalent of 406 million shares (a 16% equity
interest) of AT&T Wireless tracking stock and warrants to purchase the
equivalent of an additional 41.7 million shares of AT&T Wireless tracking stock
at US$35 per share.
Further, on November 30, 2000, NTT DoCoMo agreed to acquire a 20% equity stake
in KG Telecommunication Co., Ltd (KG Telecom) of Taiwan. Under the terms of the
agreement, NTT DoCoMo has purchased 310,702,080 shares of KG Telecom from the
firm's principal shareholder, Taiwan Cement Co., for NT$55 per share. The total
of the stock purchase amounted to NT$17,088 million.
